At this point, I just don’t have a scenario in which I want to put a lot of money into the crypto world.
Ripple fell a bit on Friday as we continue to see a lot of negativity in the crypto markets. Ripple has the added problem of an SEC court case that is continuing. At this point, it’s possible that Ripple may win the case but lose the war. Quite frankly, this is a market that has been eviscerated, and as long as we continue to see more of a “risk-off” type of attitude around the world, I just don’t see how Ripple takes off.
If we were to break down below the $0.35 level, it’s very likely that Ripple will then drop to the $0.30 level. The $0.30 level obviously has a lot of psychology around it as it is a large, round, psychologically significant figure, so a bit of a bounce would not be a huge surprise. If we were to break down below there, then it’s likely that we could go to the $0.25 level. If the court case in the United States goes against Ripple, that could send this market down to single digits rather quickly.
On the upside, if we were to break above the $0.45 level, that may be cause for a little bit of a relief rally, but I would anticipate that somewhere near the $0.50 level we would have issues. Not only does it have a little bit of psychology attached to it, but it also has the 50-day EMA there as well, and that should offer quite a bit of resistance. Breaking above there then allows this market to be one that is bought. We’ve been in a downtrend for quite some time, and you could even squint and see some type of descending triangle that we are in. In general, this is a market that I think will see a lot of negative pressure, and Ripple is pretty far out on the risk spectrum to think that we are going to go much higher. Crypto in general looks like a disaster, so it’s likely that we will see more negativity. At this point, I just don’t have a scenario in which I want to put a lot of money into the crypto world. Beyond that, if we were to see a crypto rally, Ripple is probably really far out there for me to get involved in.